How to Manage Your Money During a Career Transition

I am a long-time fan of personal finance expert Suze Orman. I first started watching her shows and reading her books when I lived in California. Suze gives great advice on how to manage your financial affairs.

I remember watching an episode where Suze was asked to give some advice to someone who had just lost their job. Her response was:

“Hope for the best, save for the worst. Immediately cut all the expenses you can, hunker down and be very frugal with your money until you get another steady job.”

These are wise words in my opinion given how some people are out of work for several months, or even years. Once you better understand the market dynamics for your profession it will give you a sense of how long the job hunt will take. In the meantime conserve your financial resources.

Her view is echoed by careers writer Penelope Trunk from Brazen Careerist:

“When you lose your job, or even if you’re worried about it, the most important thing you can do for your career is aggressively save your money. The average job hunt takes at least four months. If your salary is above average, then so is the estimated length of time you need to hunt. The more time you have to hunt, the less likely you are to have to settle for a job you don’t like.”

Another expert I respect who knows first hand how to confidently manage their finances during career breaks and job changes is Lacey Filipich, Director of Money School.